S&P Cuts Ireland's Credit Rating

February 02, 2011

Allied Irish Banks (AIB) is up 3% in thin action so far, while The Bank of Ireland (IRE) is drawing more active volume, up 1.8%. Standard & Poor's on Wednesday cut its long-term rating on Ireland to A-minus from A and lowered its short-term rating to A-2 from A-1. The agency said the ratings remain on CreditWatch with negative implications, where they were placed on Nov. 23, MarketWatch reports. The move comes in the wake of S&P's revised assessment of risks tied to the Irish banking industry and job market risks. The emergence of a European framework for restructuring sovereign debt could trigger a reconsideration of Ireland's creditworthiness, S&P said.